MUMBAI: BSE is tying up with S&P to use the global rating agency's brand for its index, the Sensex, a person with knowledge of the development said. The deal is expected to be signed on Tuesday.

When contacted, a BSE official declined to comment on the story. Alex Matturri, CEO, S&P Dow Jones Indices, responsible for all aspects of index business globally, is in town and is the one who will ink the deal with the 138-year-old exchange, according to the person quoted above.

The deal with the 138-year bourse comes soon after the expiry of the licensing arrangement between India Index Services & Products (IISL), a joint venture of NSE and S&P-owned Crisil, and S&P under which NSE used the latter's trademark for the Nifty and other indices like Defty, Nifty Dividend, CNX 500, etc.

Trading in BSE's futures and options indices - Sensex and BSE 100 - which was almost nil till September 2011, rose to a high of Rs1.72 lakh crore on December 27 last year following an incentives scheme by the bourse. The exchange has spent Rs123 crore over the past year and a half to infuse liquidity into its F&O segment.

When NSE & S&P ended the deal last month end, NSE told ET the decision to terminate the contract was a mutual one. "It was mutually decided not to extend the agreement," said an NSE spokesperson.

"We are confident that CNX Nifty 50 has acquired immense popularity in India and abroad and has the expertise to stand on its own feet."

ISL, which manages all the indices of NSE, was a major beneficiary of the S&P brand and its global reach over the past few years, said market experts.

While IISL paid a royalty to S&P for using its brand, the latter shared a majority of profits it received from marketing IISL's indices globally. S&P transferred Rs99.3 lakh it received as profit in FY12 to IISL, which, in turn, paid it a royalty of Rs17.08 lakh.